DISRUPTIVE FORCES DRIVING CHANGE IN THE OLDEST INDUSTRIES IN THE WORLD

The financial services and insurance industries are two of the oldest in the world. Lloyds of London traces its origins back to 1688, Banco di Napoli to 1539 and C. Hoare & Co to 1672. Where there is commerce, there are banks. And where there is risk, there are insurers. Now, the industries are transforming and restructuring to keep up with the pace of change and face new threats, from the ever-present risk of fraud to the change in customer demographic.

Banks are making significant changes to their business models and communications strategies in order to stay relevant, to drive compliance and to deliver an improved customer experience. They are blending physical and digital channels with customer-centric strategies, such as using mobile apps for on-the-go banking, changing their opening hours to focus on customer convenience and transforming their interior design to create more welcoming café-style environments.

The insurance industry appears to be a little further along the transformation process. Largely without a vast physical estate, they can react quickly to market changes and can be more agile than financial institutions. Insurance firms are demonstrating an astute ability to anticipate and respond to customer demand, as several key factors fuel an unprecedented level of disruption, from digital enterprise to ‘millennials’. These disruptive forces will start to impact the banking industry too. Below is an insight into insurers are responding.